I daytrade momentum breakouts but I constantly have to sit aside on days like today (7-7-06), when the market has no direction. I need to be more flexible with strategies when the environment is dead, since I can't predict when the market is going to behave like this. What indicators do other momentum guys use to switch strategies on range-bound days?
Oscillators are great for range bound days. (take your pick stochastics, MACD, RSI, etc) They look great in hindsight but how you decide that today is range bound as opposed to a trending day while its happening is beyond me. I used to play oscillators but found them to produce more false signals then anything. But then again, one man's trash is another's treasure. Good luck.
Thanks for the suggestion. I've tried stoch/rsi in the past without much success also, but I assume I need to do a bit more testing and tweaking to find out how to read them better.